NSANF - Nissan commits to invest Euro600M in Renault's EV unit Ampere
2023-07-26 05:43:44 ET
Nissan ( OTCPK:NSANY ) and Renault ( OTCPK:RNSDF ) have finalized agreements related to their restructured alliance, with Nissan committing to park €600M (~$664M) in Renault's electric vehicle unit Ampere.
The new deals focus on expanding collaboration in operational projects in India, Latin America and Europe; working together on member-company projects that partners can join; as well as rebalancing of the alliance's cross-shareholdings.
Renault ( OTCPK:RNSDF ) CEO Luca de Meo said the new deals provide the automaker a solid base to reactivate operations in key markets.
"The investment opportunity in Ampere complements and strengthens Nissan's ( OTCPK:NSANY ) ongoing electric push in Europe and will deliver numerous synergies, including cost efficiencies, regulatory compliance, and a broader range of EV products and powertrains," said Nissan CEO Makoto Uchida in a statement .
Ampere could be valued at up to €10B, sources told Reuters, but the exact size of its stake remained unclear.
As part of the restructured alliance announced earlier this year, Renault ( OTCPK:RNSDF ) will transfer 28.4% of its Nissan ( OTCPK:NSANY ) stake into a French trust to help put the two parties on a somewhat equal footing.
Nissan ( OTCPK:NSANY ) and Renault ( OTCPK:RNSDF ) expect to conclude the new agreements in Q4.
In other news, Nissan ( OTCPK:NSANY ) posted Q1 results and raised its profit guidance to reflect financial discipline and foreign exchange rates.
Shares of Nissan ( OTCPK:NSANY ), which ended 6.1% higher on Tuesday ahead of results, surged ~49% YTD. Sell-side analysts rate the stock Strong Buy , with an average target price of $15.99.
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Nissan commits to invest €600M in Renault's EV unit Ampere